COMMISSIONER OF CENTRAL EXCISE, SURAT Vs. SWAGAT SYNTHETICS

JUDGEMENT

(1.) ALL the four appeals, three filed by the appellants and one filed by Revenue are being disposed off by a common order as they arise out of same impugned order passed by Commissioner (Appeals). Nobody has represented the appellants. Accordingly, we have heard the learned SDR Dr. M.K. Rajak, appearing for the Revenue.

(2.) AS per facts on record, appellant M/s. Swagat Synthetics, a 100% EOU engaged in manufacture of processed man -made fabrics. Their factory was visited by Central Excise officers on 7/8 -5 -03 and in presence of Panchas, verification of the stock was done. It was noticed that physical stock of the fabric available in the unit was different than the recorded fabric in terms of quantity, weight and quality etc. Shri Bhomia, authorized signatory of the appellant, in his statement recorded on 8 -5 -03 admitted that the grey fabric received under CT -3 procedure were cleared illicitly in the open market against cash payment and were substituted with other processed fabrics procured from the three units. Shri M.J. Jain, partner of the said unit, in his statement recorded on 19 -5 -03, agreed with the statement made by Shri Bhomia. It is also seen that the fabrics in question were sent for testing and as per report of the Chemical Examiner, the quality of the said fabric ranged from 43.6 GSM to 62.7 GSM, whereas the quality of grey fabrics procured under CT -3 certificate was of 70 -200 GSM.

(3.) ON the above basis, proceedings were initiated against the appellant by way of issuance of show cause notice, which culminated into an order passed by the Assistant Commissioner, holding as under: